CC Minutes - 11/27/00 Work Session

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Young said that they add to the cost, but those services were also offered in other communities with lower residential rates, such as Portland and Salem. In fact, Portland offered commingled recycling services, which had increased processing costs. Mr. Kelly said he wanted to address the proposed rate increases for 2001 at some point during the discussion. He had been very surprised that the rates were increasing to the level proposed. Mr. Kelly said he was supportive of moving toward both cross-subsidization and a territorial system. He asked staff for more information about how public input into the redesign process would take place, adding that even if the council was supportive of change in the system, a radical change should be proceeded by a great deal of public feedback. Ms. Young said that staff did not yet have a specific outreach plan because it wanted more direction about the program from the council. She cited a variety of approaches that could be used, mentioning focus groups and surveys as possibilities. Mr. Kelly suggested a public hearing early in the process as well as a more targeted outreach method, such as focus group. Mr. Kelly noted that only one of the City's haulers was a union hauler. He said that the issue of fair wages and benefits for employees was of concern to him, and wanted to know how those factors could be addressed in the redesign process. Mr. Hobson observed that contracts could be written to require the prevailing wage be paid regardless of the employer's status as a union shop. Mr. Rayor asked if the City could challenge the assumption that the haulers in existence in 1989 were the continuing haulers. City Manager Jim Johnson said yes, given that the council had authority to pass ordinances. Ms. Young explained that the number of haulers was limited by the ordinance to those in business in 1989 unless an individual could prove there was a good reason for an additional license to be granted. Over time, haulers had sold their businesses, which reduced the number of residential haulers to five. She said that the council could increase the number of haulers by changing the ordinance establishing that number. Mr. Johnson pointed out that the number could be increased only if there were additional firms wishing to provide services. Mr. Rayor asked what it would take to end the City's licensing agreements with the haulers and the ramifications of that action. Ms. Young said that because of the City's licensing agreement with the haulers, the City would have to give the haulers five years' notice to end the agreement. City Attorney Glenn Klein likened the licensing agreement to a contract and said the City could summarily breach the agreements but would have to pay damages. Mr. Klein said that if the City could not reach agreement with the licensees to end the agreements, the licensees would have a claim to file against the City in court. Mr. Meisner supported the staff recommendations as reflected in the meeting packet. Regarding Ms. Nathanson's question regarding the citizens' primary concern, Mr. Meisner believed that residents wanted to have a choice of container size and cost. Ms. Young confirmed that the choices available to consumers existed with all haulers. Mr. Meisner asked if new residential haulers had expressed an interest in entering the Eugene market. Ms. Young said that she had been contacted by one individual interested in obtaining a Eugene license about four years ago; since that time the individual concerned had left the business. Mr. Meisner said it appeared there had been one such contact in eleven years. Mr. Meisner asked Ms. Young to discuss reasons for the reduction in the number of haulers over the past eleven years. Ms. Young said generally, haulers have sold their businesses and left the MINUTES--Eugene City Council November 27, 2000 Page 3 Work Session